Undercover police have arrested Palestinian protesters at gun point as violence continues to erupt over President Trump’s decision to recognise Jerusalem as Israel’s capital and shift the US embassy to the city.

Woman dead after car collides with train at level crossing

A woman is dead after the car she was travelling in was struck by a train.

The collision happened at level crossing at Cressy, north of Colac, just before 5pm, authorities told 9NEWS.

The Overland train was travelling between Melbourne and Adelaide.

The woman, who has not been identified, was pronounced dead at the scene.

A passenger on the train, who didn't want to be identified, told The Age he heard a loud bang when they struck the car.

"We felt the impact of the crash and there was a loud bang as it happened," he said.

"Staff on board the train then told us the train had collided with a car and that the people in the car had been injured. It felt like the car went under the train but I can't be sure of that as they are still trying to work out what happened."